scholarly journals Logistics benefits and challenges: The case of SMEs in a South African local municipality

2013 ◽  
Vol 6 (1) ◽  
pp. 145 ◽  
Author(s):  
Chengedzai Mafini ◽  
Osayuwamen Omoruyi
Keyword(s):  
South African ◽  
Small And Medium Enterprises ◽  
Gauteng Province ◽  
Cross Sectional ◽  
Effective Strategies ◽  
Business Operations ◽  
Local Municipality ◽  
Medium Enterprises ◽  
Descriptive Survey

<p>Small and medium enterprises (SMEs) are the lifeblood of every economy. However, in order for them to sustain their role of contributing to the mainstream economy, SMEs have to implement effective strategies in all of their business operations, inclusive of logistics. The function of logistics is important to SMEs because it is the quintessence of the organisation’s relationship with suppliers and customers. The aim of this study was to investigate the challenges encountered as well as the benefits realised by SMEs during the implementation of logistics strategies. A quantitative approach using the cross-sectional descriptive survey technique was used in which a three-section questionnaire was administered to a randomly selected sample of 131 SME owners and managers in Emfuleni Local Municipality in Gauteng Province, South Africa. Data analysis was conducted using simple descriptive statistics. The results of the study reveal that financial constraints, the lack of logistics skills among the workforce, high costs of information technology and rapid technological advancements were the most important challenges to SMEs. Challenges related to inventory and environmental management emerged as the least relevant. Enhanced competitive advantage, increased sales and a reduction in operational costs were the most important benefits to SMEs. Reduction in labour turnover and innovation emerged as the least important benefits. Based on the findings, several recommendations were proposed.</p><p><strong>Key Words:</strong> SME, benefits, challenges, Emfuleni Local Municipality</p>

scholarly journals Examining the influence of supplier integration on supply chain performance in South African small and medium enterprises

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Jeremiah Madzimure
Keyword(s):  
Supply Chain ◽  
South African ◽  
Quantitative Research ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Supply Chain Performance ◽  
Gauteng Province ◽  
Supplier Integration ◽  
Positive Correlations ◽  
Medium Enterprises

Background: As the South African economy continues to grow, the role of small and medium-sized enterprises (SMEs) as a potential source for employment creation and productivity within the country has become widely acknowledged. However, one area in which the SMEs in the country still need to develop is in their implementation of supply chain management practices, particularly their relationships with suppliers, which could result in either the failure or success of any business enterprise. Majority of studies conducted in this area have focussed on large firms, thereby creating a research gap in this area.Aim: The aim of this study was to examine the influence of supplier integration on supply chain performance in South African SMEs.Setting: This study was conducted in Gauteng province of South Africa.Methods: A quantitative research methodology was employed in this study. A convenient sample comprising 283 owners and managers from SMEs drawn from the Gauteng Province was used in the study. The collected data were then analysed using Pearson’s correlation and regression analysis.Results: Positive correlations were found between supplier integration and both the tangible and intangible sub-dimensions of supply chain performance. Supplier integration also predicted both the tangible and intangible sub-dimensions of supply chain performance.Conclusion: These results imply that to improve the performance of their supply chains, it is imperative for SMEs to ensure that linkages with their suppliers are properly aligned for improved coordination, which leads to better relationships and supply of materials. This study contributes to the literature by proposing and testing the influence of supplier integration on supply chain performance.

Unravelling SMEs’ participation and success in public procurement

2020 ◽  
Vol 20 (4) ◽  
pp. 377-401 ◽  
Author(s):  
Carmela Di Mauro ◽  
Alessandro Ancarani ◽  
Tara Hartley
Keyword(s):  
Small And Medium Enterprises ◽  
Public Procurement ◽  
Sample Selection ◽  
Cross Sectional ◽  
Content Type ◽  
Factors Affecting ◽  
The Public ◽  
Ex Post ◽  
Medium Enterprises

Purpose This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders. Design/methodology/approach The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success. Findings Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms. Research limitations/implications Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders. Social implications Findings may inform policies for the inclusion of smaller firms in the public marketplace. Originality/value To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.

Practice of information systems

2006 ◽  
Vol 17 (2) ◽  
pp. 199-223 ◽  
Author(s):  
Milind Kumar Sharma ◽  
Rajat Bhagwat
Keyword(s):  
Operations Management ◽  
Survey Methodology ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Cross Sectional ◽  
Content Type ◽  
Business Operations ◽  
Current Trends ◽  
Day To Day Operations ◽  
Medium Enterprises

PurposeTo provide the outcome of information system (IS) related practice survey designed to identify current trends in Indian small and medium enterprises (SMEs).Design/methodology/approachThis research is exploratory in nature, a survey methodology is used for study and the focus of study is cross‐sectional. Two companies have been selected for detailed case studies. The objective of the study was to become more familiar through survey and information collected to one point in time. The methodology was based on a questionnaire survey and personal interviews.FindingsThe outcomes, based on a survey of 210 SMEs, reveal that though SMEs understand and acknowledge the importance of the IS in day‐to‐day operations management in the present dynamic and heterogeneous business environment but these are yet to implement, operate and exploit it fully in a formal and professional manner so as to enable them to derive maximum business gains out of it. SMEs are not found equipped adequately with the IS resources to suit their needs.Research limitations/implicationsThe target of the study is the SMEs operational in the western part of India and hence it has the limitation in terms of the scope. However, the overall results are encouraging with 70 percent response rare in the survey and underline the need for more such studies. The results have implications for all managers responsible for IS, any SME in the era of globalization.Originality/valueThe paper presents IS‐related practices going on in Indian SMEs. Findings reported in the paper provide SMEs operators the utility of IS in day‐to‐day business operations.

scholarly journals The Myth of Social Capital in Development of Small and Medium Enterprises: A Case Study of Handloom Industry at Peshawar Valley

2021 ◽  
Vol 5 (1) ◽  
pp. 169-181
Author(s):  
DR. MUJIB UR RAHMAN ◽  
ABDUR RAHMAN ◽  
SHAH RAZA KHAN
Keyword(s):  
Social Capital ◽  
Firm Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Relational Capital ◽  
Cross Sectional ◽  
Future Viability ◽  
Analytical Research ◽  
Medium Enterprises

The purpose of this study is to analyze the role of social capital in development of small and medium enterprises in Peshawar Valley. Relational capital such as business relational capital and social relational capital is used as tools of social capital. Firm performance is measured using attributes like profitability and future viability. A cross sectional, descriptive and analytical research design is adopted using a representative sample of 169 manufacturing weavers. Data is collected using a self-administered questionnaire. The findings reveal a significant and positive relationship between relational capitals, firm performance. It is recommended that investment in social capital improves firm performance with a positive impact on wellbeing of overall community. Therefore, managers should intensify initiatives to encourage greater understanding and acceptance on relational capital elements, employ a viable relational capital composition that includes building strong social relational ties with the community and government and pay attention to customers and employees in order to identify their needs and provide them with optimal values. This is likely to increase firm performance and development the small and medium enterprises.

scholarly journals The risk of overvaluing networking on small and medium enterprises performance in Gauteng province, South Africa

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Semukele H. Mlotshwa ◽  
Jabulile Msimango-Galawe
Keyword(s):  
South Africa ◽  
Small And Medium Enterprises ◽  
Statistical Technique ◽  
Social Business ◽  
Gauteng Province ◽  
Cross Sectional ◽  
Business Networking ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Background: Several studies have been conducted to investigate the relationship between networking and performance, but unfortunately findings have been inconclusive. Nevertheless, networking has been recognised as a vital element for enhancing competitiveness amongst small and medium enterprises (SMEs).Aim: The objective of this study was to investigate the influence of different forms of networking, networking activities and the perceived importance of networking on SME performance.Setting: The study was conducted in South Africa, more specifically on entrepreneurs who have SMEs operating in the Gauteng province.Methods: This was a quantitative study with a cross-sectional research design on a sample size of 304. Multiple linear regression was employed as the core statistical technique to analyse the primary data.Results: It was evident that the more value entrepreneurs put on networking, the lesser their businesses performed, as the relationship became negative. However, the more they got involved in networking activities and maintained the relationships, the better their businesses performed. It was interesting to note that social, business and managerial network forms emerged as one form of networking, which we have named business networking. However, the importance and maintenance of networks were very distinct as networks were valued higher than what we saw from the maintenance and participation in networking.Conclusion: The study does not suggest that networking is irrelevant. However, it argues that this might be reflecting the risk of overvaluing networks. It is evident that networking influences performance of SMEs irrespective of whether it is social, business or managerial.

scholarly journals Mediating Entrepreneurial Creativity – The Effect of Human Resource Practices on Innovation

2020 ◽  
Author(s):  
Juliansyah Noor ◽  
Musa Alkadhim Alhabshy ◽  
Mohd Rafi Bin Yaacob
Keyword(s):  
Human Resource ◽  
Small And Medium Enterprises ◽  
Mediating Effect ◽  
Human Resource Practices ◽  
Cross Sectional ◽  
Mediating Role ◽  
Medium Enterprises ◽  
Creativity And Innovation ◽  
The Relationship

This research aims to evaluate the link between human resource practices (HRPs) and innovation with mediating effect of entrepreneurial creativity. This research uses the hierarchical analysis to examine data collected from entrepreneurs running 172 small and medium enterprises. The results show that (a) HRPs have a positive and significant effect on entrepreneurial creativity; (b) HRPs have statistically significant impact on innovation. These results provide empirical evidence that entrepreneurial creativity mediates the relationship between HRPs and innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity causes improving employees' innovation. Also, the findings provide evidence that the mediating role of entrepreneurial creativity cause improving employees' innovation. By providing a cross-sectional examination of our model, we showed that HRPs and entrepreneurial creativity are of essence in shaping an innovative context. A comprehensive view on the triggers and outcomes of entrepreneurial creativity and innovation are needed, as the traditional unidirectional cause-effect rationale short in explaining how these concepts relate to one another and to entrepreneur experiences of HRPs.  

Effect of internal integration on SMEs’ performance: the role of external integration and ICT

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Timothy Amoako ◽  
Zhang Huai Sheng ◽  
Courage Simon Kofi Dogbe ◽  
Wisdom Wise Kwabla Pomegbe
Keyword(s):  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type ◽  
Information And Communication ◽  
Internal Integration ◽  
Medium Enterprises ◽  
The Relationship

PurposeThe paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.Design/methodology/approachCross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.FindingsThe results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.Practical implicationsPractically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.Originality/valueEngaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.

scholarly journals The influence of logistics integration on information sharing and business performance: The case of small and medium enterprises in South Africa

2013 ◽  
Vol 7 (1) ◽  
Author(s):  
Richard Chinomona ◽  
R.I. David Pooe
Keyword(s):  
Information Sharing ◽  
South African ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Future Research ◽  
Gauteng Province ◽  
Managerial Implications ◽  
Medium Enterprise ◽  
Future Research Directions ◽  
Medium Enterprises

Logistics integration across partnering firms has become the backbone of supply chain management as it facilitates information sharing, which is required in order to enhance business performance. This study investigated the mediatory role of information sharing on the relationships between logistics integration and business performance within the small and medium enterprise (SME) context. Five research hypotheses were postulated and the hypotheses were empirically tested using sample data from the SME sector in South Africa’s Gauteng Province. The results indicated that logistics integration positively influences information sharing and business performance in a significant way within the context of South African SMEs. Managerial implications of the findings are discussed, whilst limitations and future research directions are indicated.

Mediating Role of Utilization of Financial Products and Services on the Relationship between Financial Access and MSMEs Growth in India

2020 ◽  
Vol 47 (3) ◽  
pp. 261-278
Author(s):  
Harleen Kaur ◽  
Palvi Bansal
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Financial Access ◽  
Goods And Services ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The study’s main aim is to figure out what function financial goods and services play in mediating the link between financial access and micro, small and medium enterprises (MSMEs)’ growth in developing markets. Consequently, this article aims to see whether the usage of monetary goods and services in a developing nation like India mediates the connection between financial access and MSMEs’ growth. The data were collected from 392 MSMEs in the Jammu region using a cross-sectional research method. The partial least squares structural equation modelling (PLS-SEM) technique was used to see whether the use of financial goods and services in developing nations had a mediating consequence on the link between financial access and MSMEs’ growth. The study exclusively collected data from MSMEs in India’s Jammu region. There is still the possibility of confirming this result in other emerging economies. MSMEs may participate in financial access initiatives provided by organisations to use financial services better.

scholarly journals ROLE OF ENTREPRENEUR’S COMPETENCE ON GROWTH OF SMALL AND MEDIUM ENTERPRISES

2021 ◽  
Vol 3 (2) ◽  
pp. 84-96
Author(s):  
Fred Gichana Atandi
Keyword(s):  
Small And Medium Enterprises ◽  
Resource Mobilization ◽  
Economic Life ◽  
P Value ◽  
Market Place ◽  
Entrepreneurship Policy ◽  
Cross Sectional ◽  
Study Results ◽  
Medium Enterprises

The study endeavored to determine the role of entrepreneur’s competence on growth of small and medium enterprises. The specific objectives of the study were to; establish entrepreneur’s competence small and medium enterprises in Bungoma County, examine the growth of small and medium enterprises in Bungoma county and to determine the relationship between entrepreneur’s competence and growth of small and medium enterprises. The study used a combination of descriptive, cross-sectional and correlation research designs and data was gathered using a self-administered questionnaire on 201 SMEs. Data was analyzed using descriptive and inferential statistics. The resource-based theory was used to guide this research. The study findings indicated that the grand mean for entrepreneur’s competence was low with a mean of 2.23 with a SD of 0.50. The implications of the findings is that SMEs operators in Bungoma county lack the prerequisite entrepreneurial skills and knowledge  affecting their growth save for resource mobilization. It was also found that the grand mean for growth of SMEs was low with a mean of 1.96 and SD of 0.58. The implication of the findings was that SMEs  were performing dismally  affecting their graduation/transition  to the next higher level. The study results also found that there was a significant relationship between entrepreneur’s competence and growth of SMEs with p. value 0.000. The study concluded that SMEs should embrace relevant competence skills to enable them operated growth oriented enterprises which can graduate to higher levels thereby contributing to improved social and economic life of the operators and the nation at large. The study recommended that owner managers of SMEs to attend trainings on resource mobilization and innovation so as to acquire adequate resource mobilization and innovation skills and differentiate themselves in the market place to grow their enterprises. The study further recommended that government to put in place entrepreneurship policy to nurture business startups through mentorship, motivation and attitude change as they walk through entrepreneurship journey. Keywords: Entrepreneur’s Competence, Growth, Small and Medium Enterprises

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